The New and Basic State Pensions will rise by 8.5 per cent while additional elements will increase by 6.7 per cent.
Millions of older people in receipt of the New or Basic State Pension are set for a significant boost this year after the Department for Work and Pensions confirmed payments will rise by 8.5 per cent from April 8, 2024. This means someone on the full New State Pension will see payments go up from £203.85 per week to £221.20 and as payments are typically made every four weeks, this amounts to £884.80 each pay period.
The increase of 8.5 per cent is due to the earnings growth measure of the Triple Lock. Under the Triple Lock, the State Pension rises each year in line with inflation, earnings or 2.5 per cent - whichever is higher.New State Pension payment rates 2024/25 These payments will rise by 8.5%:Top Money Stories Today Additional pension payments Increments to the following will rise by 6.
Pension consultants LCP has warned a growing numbers of pensioners could be dragged into the tax net based purely on a State Pension, adding there is no automatic way of collecting the tax that they owe, because State Pensions are paid in full, before the deduction of tax.Under ‘simple assessment’, the DWP would notify HMRC at the end of a tax year how much State Pension people have received. If this takes someone over the income tax threshold, there would then be a tax bill to be paid.
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